Wall Street “panic phase over”
by Alan Thornhill
US stocks took off last night – after a rough start – as the aviation giant Boeing reported better results.
The Dow Jones industrial index closed 42.99 points higher at 12,763.22.
Improved sales, reported by MacIntosh, also helped.
The tech heavy NASDAQ composite index rose 28.27 points to 2,405.21.
The S&P 500 also gained ground, rising 3.99 points to 1,379.93.
Boeing’s profits were better than expected.
And one optimistic analyst said the “panic phase” of the credit meltdown is “now over.”
The Australian dollar also enjoyed a brief triumph overnight, rising above 95US cents, before falling back to 94.90.
Oil futures also fell back overnight, but were still at $118.20, after coming within cents of $US120 a day earlier.
And that is worrying news, especially as Australia’s inflation rate hit 4.2 per cent yesterday, with price rises in all capital cities now well above the Reserve Bank’s target range of 2-3 per cent, over the course of a business cycle.
Normally, that would have the Reserve Bank board reaching for the interest rate button.
Yet, even though the price of a loaf of bread jumped by 9 per cent, over the past year, that may not happen this time.
That’s because the US credit crunch is doing the Reserve Bank’s job for it.
Early signs suggest that both business and consumer spending has fallen sharply over recent weeks.
And another rate rise, in present circumstances, would be dangerous.
1 Comment
Profile
The Latest
22nd May
The Dow Jones index rose 135.10 points to 12,504.503
Embattled MP Graeme Thomson “explains” to Parliament (see stories)
THE MARKETS
| All Ordinaries | 4173.500 | |||||||
| S&P 500 | 1315.99 | |||||||
| Aud To Usd | 0.9927 | |||||||
| Bhp Blt Fpo | 32.320 | |||||||
| Bramb Ltd Fpo | 7.030 | |||||||
| Woolworths Fpo | 26.880 | |||||||
| Westpac Fpo | 20.750 | |||||||
| Wesfarmer Fpo | 30.050 | |||||||
News to Use
- Pokie reform
- Consumer confidence falls, but….
- Small business “squeezed”
- Thomson explains
- Support for Afghanistan
- The G8 gamechanger
- G8 goes for growth
- Your super? Some advice and a checklist
- Australian wages finally outstrip prices
- Watchdogs rapped over Trio collapse
- Confidence still “weak” despite good figures
- Increased family payments to start now
- Greece headed for fresh elections
- Job security worries curb spending
- Greece on the edge
Topics
- Airlines (18)
- Banking (1479)
- Business (1586)
- Communications (35)
- crime (3)
- Disaster (84)
- Economics (1588)
- Environment (76)
- Financial advice (1357)
- Health (55)
- Housing (453)
- Inflation (432)
- Insurance (66)
- Investment (1404)
- Markets (1137)
- Media (109)
- Politics (1484)
- Regulation (681)
- retirement (15)
- Rural australia (87)
- Security (14)
- Social security (157)
- Superannuation (175)
- Tax (247)
- The latest (1)
- Trade (292)
- Uncategorized (278)
Archives
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- September 2007
- August 2007
Recent Comments
- How you pushed up home loan rates « Private Briefing – Personal … | My Blog on How you pushed up home loan rates
- Pete on Rudd government had entered “paralysis:” Gillard
- Liam Knuj on The Prime Minister, Julia Gillard’s, New Year’s Message
- Change is for the better,change is where your heart grows stronger on Family Assistance boost
- Harry on The Prime Minister, Julia Gillard’s, New Year’s Message




Alan Thornhill is a parliamentary press gallery journalist. Private Briefing is updated daily with Australian personal finance news, analysis, and commentary.
[...] Wall Street “panic phase over” [...]